Consumer confidence in Australia has shown a notable increase, rising by 4.1 points to reach 87.5 points last week. The four-week moving average also saw a slight rise of 0.2 points, bringing it to 85.2 points.
Weekly inflation expectations experienced a decline of 0.2 percentage points, settling at 4.9 percent, while the four-week moving average increased slightly by 0.1 percentage point to maintain the same level.
The index measuring 'current financial conditions' over the past year surged by 9.1 points, and 'future financial conditions' for the next 12 months improved by 4.9 points.
In terms of economic outlook, 'short-term economic confidence' for the coming year grew by 2.7 points, and 'medium-term economic confidence' over the next five years rose by 5.2 points.
However, there was a decrease in the subindex assessing whether it is an opportune time to purchase major household items, which fell by 1.4 points.
ANZ Economist Sophia Angala commented on these developments: "Consumer Confidence rose 4.1 points last week to 87.5 points. Households are feeling more confident in their personal finances and economic conditions, which may reflect the improvement in market sentiment."
Angala further explained that "solid US personal spending data in the first quarter has helped global sentiment, and market reactions to global uncertainty have eased overall a month after US tariff announcements."
Regarding inflation expectations, she noted: "The decline in weekly inflation expectations follows last week’s inflation print, which showed that, on an annual basis, Australia’s trimmed mean inflation (the Reserve Bank of Australia’s preferred measure of core inflation) eased to its lowest level since the fourth quarter of 2021."
She added that given moderating inflation over recent quarters and potential risks from trade uncertainty affecting domestic growth, "we expect the RBA to cut the cash rate by 25 basis points at its May meeting."